Six New Home Goods Retailers Select RETAILvantage and Join the PROFITsystems Family!

PROFITsystems is so excited to announce six new additions to our family of home goods retailers! Read on to hear about their stores and why they selected RETAILvantage as their retail management system.

PROFITsystems new home goods retail client

McKay’s Furniture  

McKay’s Furniture of North Kingstown, Rhode Island came to PROFITsystems concerned with the accuracy of their inventory data and quality of their current CRM. In order togrow, they knew they needed a system that addressed these concerns and worked to facilitate their success rather than hinder it. Thanks to the robust suite of features provided by RETAILvantage in the areas of inventory management, reporting and CRM, McKay’s felt compelled to make the switch. We’re so excited to help them reach their goals and look forward to the many successful years to come!

PROFITsystems new home goods retail client

Furniture Palace

Furniture Palace, located on the island of Curaçao, was in need of a new retail management system to support their growing business needs. The owners were thorough in their search for a new solution and very selective as they narrowed down their options. They knew they would become stagnant without the features and capabilities required for continued growth and prosperity, and that’s why Furniture Palace chose RETAILvantage. We are so excited they put their trust in PROFITsystems, and can’t wait to show them why they made the right decision!

PROFITsystems new home goods retail client

Sleep Etc.

Sleep Etc. of Norwalk, CT took their time shopping for a new retail management system and looked at many different providers throughout the process. As a two-store mattress operation with a high volume of custom orders, the decision makers at Sleep Etc. quickly saw how equipped RETAILvantage was to handle their specific set of needs. Ultimately, the unparalleled features and capabilities of our software coupled with our quick response times and transparency throughout the decision making process resulted in Sleep Etc. choosing PROFITsystems as the best fit for their store. Welcome to the family!

PROFITsystems home goods retail client

DeMeyer Furniture

From facing constant errors in their accounting system to their increasingly strained ability to track inventory, the owners of DeMeyer Furniture were realizing their current system was no longer sufficient. Based in Meridian, Idaho, DeMeyer set out to look for a more robust solution able to keep pace with the company’s growth and handle their expanding needs. After looking at various systems, they determined the best partner for their continued success was PROFITsystems. We’re so excited to have added them to the PROFITsystems family and look forward to facilitating their growth for years to come!

PROFITsystems new home goods retail client

Jenner’s Home Furnishings

Jenner’s Home Furnishings of Fort Mohave, Arizona was working to quickly grow their company and looking for a solution that would allow them to seamlessly integrate additional store locations. They decided RETAILvantage fit the various needs of their expanding operation, and we couldn’t be more excited to have them.

PROFITsystems new home goods retail client

Furniture Superstore

Like many other retailers that switch to RETAILvantage, Furniture Superstore of Albuquerque, New Mexico, was growing at a faster rate than their current system could seemingly handle. At the recommendation of Virginia Home Furnishings, another PROFITsystems customer, they contacted us for assistance. The owners of Furniture Superstore fell in love with RETAILvantage after several extended demonstrations, and with ease of use and overall commitment of our company to their success, they were sold.

Cheers to our newest additions and the exciting years ahead! We look forward to working with these fantastic retailers to increase their profitability!

TopLine Performance Group Inaugural Meeting: A Recap

PROFITsystems performance groups meet to increase profitability

 

Last month, 20 retail sales professionals met in Peoria, Illinois, with a focus on improving sales volume. The inaugural TopLine Performance Group meeting went off without a hitch, and I am pleased to report that all who attended left equipped with the tips and best practices necessary for improvement.

The meeting began with a tour of Sherman’s Furniture, Electronics, and Appliance operations, where Sherman’s store managers did a great job of showing the group how they manage such a high-paced sales floor while still delivering excellent customer service.

Performance group members participated in best-practice discussions covering a wide range of topics, each giving and receiving actionable tips for marked improvement.  Some of the practices shared included techniques to improve customer tracking, and tips on how to increase average bedding sales, close rates and store traffic. Members also compared key sales performance indicators, digging deeper into how certain members achieved exceptional results while offering advice to those who did not.

Each group member was also asked to bring their most pressing sales management challenge to the meeting for discussion. With the combined experience of the retailers in the room, the power of the advice shared was astronomical. Each member received top-tier recommendations from peers on how to best solve their particular challenge, and all ended the discussion equipped to then conquer that challenge thanks to the wide range of insights shared from so many varying perspectives.

Finally, each member presented goals for improvement that they planned to work towards once the meeting adjourned. This made every retailer in attendance accountable to both their TopLine Performance Group peers and to their own businesses. In the next meeting at Garrison’s Furniture and Mattress in Medford, Oregon, members will be asked to report on their progress and discuss where they are in achieving these goals.

To learn more about the performance groups we run and inquire about getting involved, please contact me at david.mcmahon@highjump.comIf you’re still on the fence about joining, here are some comments from current group members to encourage you to take the leap:

“Amazing experience. The group knowledge is overwhelming; can’t wait to do it again!”

-          Joe Alvarado

 “It was great. I have a lot of takeaways, met a lot of great people and had fun!”

-          Chris Baca

“The group participation was great. This helped in getting new ideas and feedback for our business plans.”

-          Brad Lutz

“It’s so informative to hear perspectives from other businesses.  There are so many great ideas and we love the format that David McMahon and Wayne McMahon put together.  We are very glad they came up with this group meeting for sales managers.”

-          Tony Hnilicka

“Everything was well put together and the information was shared freely.  I enjoyed it and learned a tremendous amount.”

-          Jason Honeycutt

“I’d say that compared to an owner’s group meeting, we got more improvement ideas that were more specific and concrete.  This was more operational stuff, and that makes sense as we all had our managers there who are in the thick of the day-to-day work.  We’ll be sending our sales manager to the Topline performance group meetings and I’ll continue to attend the owner’s meetings.  Both incredibly valuable, in slightly different ways.”

-          Paul Sherman

David McMahon, CSCP, CMA, EA is VP of consulting and performance group at PROFITsystems, a HighJump Company. He holds professional certifications as a Certified Supply Chain Professional and is a Certified Management Accountant. David directs four performance groups (the Kaizen, Visionary, Gladiator and TopLine groups) and multiple consulting projects.  He can be reached at david.mcmahon@highjump.com.  

Purchase Advice vs. Auto Inventory Replenishment

By Lee Rychel

Purchase advice how to restock inventory

Since the beginning of time, merchants have struggled with knowing how to keep best-sellers in stock while minimizing the amount of slow-movers on the floor. These issues are directly related and are often addressed with a Min/Max model. This model (also called Par Stock) is used by retailers in an effort to constantly maintain the healthy levels of inventory they think they need.

The main challenge with the Min/Max approach is that it’s often more subjective than objective.  It’s nearly impossible to accurately track the rate of sale for hundreds of items manually. We get too excited about an item that sold quickly, overbuy as a result, and then end up over-stocked once that item loses popularity

As a traveling consultant who has worked with more than 150 retailers, I’ve seen dozens of iterations of spreadsheets and software aimed at helping buyers control hundreds of inventory items. Each instance was a massive undertaking and still fraught with a healthy dose of subjectivity. Additionally, these systems only tracked the top performers- but what about the 80% of the inventory that is NOT performing?  How long do you keep those dogs around before making the decision to move them off the floor?  Moving them out of stock means freeing up money for new intros, but we typically wait too long to make that call.

One of the greatest developments in building out the PROFITsystems retail management system was the development of the Purchase Advice Report.  This tool works together with our software’s Calculate Ranking routine to give the buyer a truly accurate look at what’s really happening within their inventory.  The work the software does to give a sound recommendation far surpasses the information provided by a spreadsheet. The calculations factor in a number of things that are important when making a recommendation, including:

  • Rate of Sale (trends)

- How many items were sold during each of the last six months, weighting the most recent period more heavily

- Biannual trend comparisons

- Last six months vs. last 12 months, with the ability to identify new items that take off immediately

- Information on down-trending items

  • Lead Time (how long it takes for items to come in)

- By using the invoice date and the receiving date, and averaging the last six receivings, you have a very accurate picture of the amount of time it actually takes for items to come in

  • Item profitability

- Using the GMROI for each item, you can determine if an item is profitable and worth stocking

  • Item Popularity

- The Calculate Ranking routine scores your inventory and displays all your information on one report so you can readily see if which items are best-sellers

  • Location Information

- Determine whether an item is on the floor, damaged or nailed down using this report

  • Stock Levels

- Use the Purchase Advice Report to track how many days an item is in or out of stock, and paint a more accurate picture of its true rate of sale

- The Purchase Advice Report looks at all inventory, taking into account reserved from stock, on-order items, and open PO (purchase order) quantities, including available inbound stock and reserved items on those open POs

  • Recommended Order Quantity

- This is the core of the Purchase Advice Report algorithm result. Based on all of the variables noted above the system makes a recommendation to buy or not to buy.

  • Overbought Stock

- The Purchase Advice Report not only gives buying recommendations, but it also displays items with negative buy recommendations, which typically mean you’re overstocked.

  • Creating the PO

- Running the report can also create the PO for the buyer to review, avoiding manually entering those items onto a stock PO.

Ever wonder how some businesses grow and stay healthy while other similar businesses struggle? Let’s take a look at how implementing these tools would impact two very typical stores.

Retailer A:

  • A $2M business with 2.5 turns of inventory at a 45% Gross Margin (GM) will typically have $440,000 of inventory on hand.
  • A $2M business with 4 turns of inventory at a 45% GM will typically have $275,000 of inventory on hand.

For the $2M business, we can free up over $165,000 of cash for every year we are able to sustain 4 turns.

Retailer B:

  • A $8M business with 2.5 turns of inventory at a 45% GM will typically have $1,760,000 of inventory
  • A $8M business with 4 turns of inventory at a 45% GM will typically have $1,100,000 of inventory on hand.

For the $8M business, we can free up over $660,000 of cash for every year are able to sustain 4 turns.

These results will occur with no increase in advertising, and at the same level of sales- and it gets better.  Reducing those dogs and keeping the winners in stock has another benefit: old inventory typically costs 30% of COGS to manage, move, wrestle, repair and fuss with before it’s sold.

In our first example above, let’s take 30% cost against half of that inventory, that’s likely not performing ($220,000).  This means there is potentially another $66,000 leaking out of your checkbook every year.  These costs and lost cash flow don’t show up on the P&L, however they do truly exist by simply buying smarter, the benefits are incredible.

For members of our performance groups, reviewing the Purchase Advice Report regularly is as important as knowing how much cash they have in the bank.  Clients who live by the Purchase Advice Report have inventory levels that make sense, as well as a much higher level of best-sellers in stock than retailers who are trying to do this by hand. Their GMROI is higher and their cash flow is much stronger, and many of our clients see major increases in turns and profitability. By only increasing the amount of turns in the average furniture store, many will see a dramatic impact on the financial health of their business.

PROFITsystems Partners with Podium, Offers Customers Special Pricing

PROFITsystems clients gain extra pricing perks with Podium to increase their store traffic through positive online reviews

podium-mobile-logo

COLORADO SPRINGS, CO (May 9, 2017) – PROFITsystems, a HighJump product and leading provider of solutions for home furnishings retailers, today announced a new partnership with Podium, offering a special rate for Podium services to PROFITsystems clients. Home furnishings retailers currently associated with PROFITsystems gain discounts and benefits in their access to Podium’s online review management software, which is designed to help retailers increase in store foot traffic with positive online reviews.

“By partnering with Podium, we’ve given our clients the opportunity to increase their in-store traffic by increasing their positive online reviews” said PROFITsystems General Manager, Joanne Gulnac. “We’ve negotiated a discounted rate on Podium’s software specifically for PROFITsystems customers, and those who have seized this opportunity are already reporting an uptick in store traffic. We’re always looking for more ways to help customers become more competitive and profitable, and we’re excited to work with Podium to help our retailers achieve the results they’re looking for!”

A leading provider of online review management software, Podium enables businesses to collect valuable feedback from customers in real time. Podium’s efficient mobile process makes it possible for businesses to collect hundreds of reviews on sites like Google, Facebook and the like, giving them full visibility into consumer wants and needs. This visibility empowers retailers to tweak their customer experience per the feedback received, ultimately increasing foot traffic and profitability as a result.

“As part of our partnership with PROFITsystems, we’re excited to help their clients increase foot traffic to their stores by offering them preferred pricing on our software” said Podium Strategic Accounts Manager, Chris Allen. “We encourage all of them to take advantage of the full Podium experience at this special discounted rate.”

About Podium

Podium is a leading provider of online review management software that enables businesses to collect valuable feedback from customers in real time. Podium’s efficient mobile process makes it possible for businesses to collect 100s of reviews on sites like Google, Facebook, and many more.

For additional information on Podium, please visit their website at www.podium.com

About PROFITsystems, a HighJump product

PROFITsystems is a complete retail management solution for the modern home goods retailer. Key components include enterprise software, consulting, performance groups, advanced education, eCommerce integration and business intelligence. PROFITsystems features real-time inventory management, customer relations management, point-of-sale and accounting systems.

For additional information on PROFITsystems, please visit the website at www.profitsystems.com.

About HighJump

In almost every industry, buyers are becoming more fickle, and more demanding. For logistics executives, effectively meeting buyer needs has become a relentless quest for speed and agility. Traditional supply chain solutions – siloed, complex and hard-to-implement – no longer suffice, as competitors find ways to deliver goods faster and more profitably.

In today’s “now” economy, HighJump helps you stay agile, with adaptable, connected solutions that harness the power of your trading partner community. From the warehouse to the storefront, from the desktop to the driver’s cab, we can help you achieve new levels of supply chain responsiveness, performance and profitability.

HighJump’s suite of warehouse management, business integration, transportation management and retail/DSD solutions form a complete, powerful and adaptable platform that allow you to drive growth, customer satisfaction and revenue. HighJump: supply chain accelerated.

For more information, visit www.highjump.com.

 

Media Contact 
Guadalupe Pagalday
HighJump
1-800-328-3271 x2705
guadalupe.pagalday@highjump.com

PROFITsystems Launches Sales Performance Group for Home Furnishings Retailers

Industry experts will work with sales leaders and managers to increase store sales volume and gross margins

COLORADO SPRINGS, Colo. (April 26, 2017) – PROFITsystems, a HighJump product and leading provider of solutions for home furnishings retailers, today announced it is launching a performance group focused on retail sales volume and margin growth called PROFITsystems TopLine Sales Performance Group. Home furnishings retail sales leaders and managers in member organizations will come together twice a year to share best practices and collaborate on growth strategies under the guidance of industry experts and consultants David McMahon and Wayne McMahon.

“We are extremely excited about this new performance group,” said Paul Sherman, owner of Sherman’s and charter member of the PROFITsystems TopLine Sales Performance Group.  “It will allow our sales managers and leaders to work with peers from around the country to maximize our sales. Even small improvements in this area of a business can have exponential results, which we’ve seen firsthand through our participation in the PROFITsystems owner’s performance group. Transformative changes happen when you get outside your four walls and engage with like-minded people.”

Performance groups meet twice a year, usually at a different member location. Participants tour a member’s operations, propose best practices, discuss challenges and opportunities, compare key performance metrics, and set and report on goals that push their businesses forward. The inaugural PROFITsystems TopLine Sales Performance Group meeting will be hosted at Sherman’s in Peoria, Ill., from May 30-June 2.

“When you get 20 committed, smart, motivated people in the same room, magic is created,” said David McMahon, vice president of consulting and performance groups, PROFITsystems. “In directing these groups for many years with Wayne, we have seen some spectacular results,” “Our groups contain some of the most innovative people and profitable businesses that we have encountered in the industry. Together, we will ensure this new performance group is a huge success.”

Applications are being considered for the new performance group at this time. All home furnishings retailers are welcome to apply. Considerations for acceptance include business profile and goals. For more information, email David McMahon at david.mcmahon@highjump.com.

About PROFITsystems, a HighJump product

PROFITsystems is a complete retail management solution for the modern home goods retailer. Key components include enterprise software, consulting, performance groups, advanced education, eCommerce integration and business intelligence. PROFITsystems features real-time inventory management, customer relations management, point-of-sale and accounting systems.

For additional information on PROFITsystems, please visit the website at www.profitsystems.com.

 

Media Contact 
Guadalupe Pagalday
HighJump
1-800-328-3271 x2705
guadalupe.pagalday@highjump.com

Solutions Sound-Off: Industry Peers Present Solutions for Dealing with the Challenge of Communication

On Day 2 of Elevate 2017, David and Wayne McMahon conducted an open forum session on “Challenges and Opportunities.” They kicked it off by asking attendees to sound off on the biggest challenges they faced within their retail operation. Once they selected a challenge, the entire audience worked together with David and Wayne to help provide a solution to that obstacle, often sharing their own best practices and tools on how they deal with things in their own store.

Of all the challenges discussed during this session, Darcy of Walker’s Furniture brought up an issue that much of the audience could relate to: communication. It’s a broad issue, one that runs deeper than the surface level, and it was covered in detail by David, Wayne and other members of the audience. Here’s a recap of the valuable discussion on how other retailers tackle communication in their stores:

Darcy, Walker’s Furniture: “I would say that one of our major challenges is the communication of procedures, ideas or concerns between 16 locations. I want to figure out what it is that we can do or say from the administrative side to help our sales people and managers understand that it’s OK to give us feedback and communicate openly; that we won’t use their feedback against them negatively.” 

David then asked the audience who else faced the same issue with communication in their own store. He then inquired who felt they had a positive culture of communication, and what systems they had in place to create that environment.

A representative from Weinberger’s Furniture was the first to respond.

Karly, Weinberger’s Furniture:We started doing a 30-to-45 minute call once a week between all of the managers and myself. We essentially spend the entire meeting touching base and talking about what’s happening at each store, if anyone has any major issues, what if any major sales are coming up, and just get everyone on the same page. It has helped a lot with streamlining communication and has also worked as an outlet for any questions needing immediate answers.”

Wayne: “I believe that communication and feedback is a multi-level issue. For example, if you have 15 locations, do each of your respective managers and leaders hold daily pre-shift meetings? If the answer is no, then that needs to be put into place, and your regional managers need to be the enforcers making sure these meetings are actually taking place. What about your general managers? Do they hold regular meetings with sales managers? Regular touchpoints between key players such as your managers, CEO, controllers and the like are crucial to ensuring that all important information is received by everyone, the necessary feedback is given and the lines of communication always remain open and fluid.”

David: “Not everyone is able to have that multi-level structure in their business, but I’ll tell you about a practice we’ve seen businesses of all sizes try out and succeed with, and that’s the practice of one-to-one. Whether you’re a $3 million operation or a $50 million operation, the practice of one-to-one works for businesses of all shapes and sizes. It was first tested out through one of our Kaizen Performance Groups, and we then brought it out to Sherman’s Furniture, where they’ve seen huge improvement since implementing it. The practice of one-to-one is essentially the practice of every person in your business meeting with their manager once per month to have a conversation about progress, obstacles and the general state of affairs. It’s a very simple, casual meeting, it’s documented and questions “How do you think we’re doing” or “Do you see anything we can do better?” if the employee is facing any issues that would also be documented during this meeting and then next steps would be discussed and outlined. Just a simple conversation like that to open up the lines of communication works wonders, and while it feels like a lot of people talking to each other at first, Paul of Sherman’s Furniture can’t say enough how transformative the one-to-one initiative has been for his business.”

As a few other audience members offered their own suggestions. One PROFITsystems customer suggested a podcast called Manager Tools, an educational series hosted by two men from West Point focusing solely on one-to-ones. She said the content shared has been extremely helpful for her business, and she recommends it to any manager looking for strategies to improve.

Another customer spoke about conducting a daily call with this entire operation. Every morning, everyone hops on at 9 a.m., kicking off the call with “good news” to acknowledge everything that’s going well. Following good news is challenges, when each person has the opportunity to voice not just the obstacles they’re facing that day, but what they need from management to overcome them. The call lasts no more than 15 minutes and has proven to be extremely effective in keeping the daily operations of his store running smoothly and efficiently.

David closed out this detailed discussion surrounding the challenge of communication by reinforcing how crucial it is to implement and adhere to a system that works for your store. It’s about constant contact, touchpoints and actually getting in front of employees and managers. Holding the necessary meetings between the necessary people often and in-person is the best way to communicate effectively, and that’s how you keep your operation, and everyone in it, organized, effective and profitable.

Tips and Practices from the Field – Prime!

By David McMahon

I’m sure you all know how the biggest and fastest-growing retailer in the universe, Amazon, generates recurring revenue from its customers, right? Amazon Prime. I bet at least half you reading this right now are Amazon Prime members. Yes, we Prime members are amongst Amazon’s best retail customers, and for that we get priority shipping, free books and on-demand videos and music. It’s easy – and it’s free.

Wait … it’s not free. But it is worth every penny.

So, why can’t other retailers offer a Prime service of their own? Actually, they can – and they are as the Prime membership model grows in popularity. Retailers of every kind are beginning to offer the same type of services provided by Amazon, and you can too. Here are a few ideas to help you get those mental juices stirring:

  • Come up with a polished, annual (12-month) subscription called: *Your Name Here* PRIME
  • Decide on exactly what your Prime program will offer members (unlimited deliveries, two sofa or bed pillows per year with purchase, buy one, get one 50% off card)
  • Decide on your 12-month subscription rate (ex: if deliveries are normally $99, charge $250)
  • Add the program into your selling system and train sales people on how to properly present and sell it

As you can see, this is mostly a play on increasing delivery fees, right? Well, not really – it is actually much more than that. I’m sure you’re sitting there reading this thinking to yourself, “Who in their right mind would pay $250 for delivery when they could pay $99?”

You might be surprised.

In reality, this is actually a loyalty program in disguise. Say someone is furnishing their whole house or thinking of doing a project in phases – this type of Prime membership would be a perfect fit, and the best part about it is that people pay to join, which means they’re serious.

People shop around, and if they’re looking at you, you can bet they’re also looking at your competitors. Give customers an extra reason to come back and shop with you first by offering them benefits they can’t resist. Be creative – come up with a Prime program of your own and start rewarding your loyal customers, both past and present.

David McMahon, is VP of Consulting and Performance Groups at HighJump. He works in the field improving all aspects of businesses like yours through consulting, speaking and performance group engagements. He can be reached at david.mcmahon@highjump.com.

Did You Know When You Work in the Cloud…

By Lee Rychel 

cloud computing

The question comes up in most every instance when we are discussing working in the cloud, with both current server based clients and new customers: “What if I lose my internet?” – It happens. Although system-wide outages of any duration are rare, it can happen that your local internet provider is down because local outages can happen. The fear is we are done, out of business and unable to connect to our data. A valid one. Many retailers will install redundancies so that if one provider fails, another is available. There is an alternative.

In May of this year, Jan and I moved aboard a motor vessel. We took possession in Chesapeake, VA, to begin our new lifestyle and an incredible journey. PROFITsystems and the HighJump family insisted on one condition. We could do this if I could stay connected. No problem we said. Heck, nearly every marina has Wi-Fi. How hard can this be?

Reality struck soon after we left the dock. Marina Wi-Fi may be available, but it’s pretty much only sufficient for email and browsing. And then you usually need to be standing in the laundry room up by the office where the router sits behind a filing cabinet on that unused desk piled high with parts and papers. The kind of heavy lifting my job required including having a secure VPN to our corporate computers was just not possible in most cases. NOW What?LeeBoat

In a word, 4G. Our Verizon account includes some tablets and our phone’s capable of acting as an internet hotspot. For 7 months now we’ve been making our way down the East Coast. We take our time, sometimes spending a week or more in marinas, other times anchored out in the ICW (Intracoastal Waterway) On October 2 we pulled into our home for the next month, Hilton Head. On October 7, Mathew, a category 2 hurricane, slammed head on into the island. Services were down for weeks. After a few days ashore, anxious to get back on board, we returned to witness the devastation. Fortunately, our home was secure and in a matter of minutes I was up on the net; working even though the area had no power or local services of any kind. Cell service was the only thing available.

Our Verizon service has never let us down. We’ve spent days anchored in remote creeks, deep in the coastal marshes – far from any towns or services. I’ve been able to connect to our servers each and every day since we left VA. Today, as I write this, we are in East Central Florida – with a solid 4G connection.

What struck me was this: in many cases I will be asked to either demo our POD product (cloud) or, I’ll need to get into the latest version of RETAILvantage2.3 to answer a client question. I use this same 4G hotspot to manage those activities while connected to our servers at the same time. In fact, I’ve pretty much forgotten that I’m on a wireless connection. I can do anything in POD that I can do on a local installation of the software. Granted, I’m not a store full of workstations entering sales and receiving truckloads of new furniture. But if I were a retailer working in our cloud and lost my local internet connection, I know I can get back online, back to my data and continue to run my business using a cellular hotspot.

Is the cloud the best answer for everyone? Maybe not. But having the freedom to work from anywhere AND keep my store online even when the internet is down, is indeed a huge benefit.

Could Your Software Pay Its Own Way?

By Lee Rychel

geek software

Every month we get a number of phone calls from clients addressing accounting challenges, typically originating from running two book-keeping systems.  You probably know that your PROFITsystems software includes a fully-integrated accounting system.  All transactions entered into your software automatically create G/L distributions defined by your system defaults.  Whether you use it or not, your accounting is being done behind the scenes every time you buy or sell anything in the software.

When I traveled to clients who were getting set up on the PROFITsystems software, I would always encourage clients to consider using the accounting tools nested inside this robust software package.  As a retailer using the software for many, many years – I insisted on the store using these built in accounting tools.  Why? Because it eliminated paying someone to do what was already being done for us.  In my store, even a receipt for pizza for the sales staff on a busy Saturday was immediately recorded in the Cash Paid Out feature in Enter Cash.  Distribution to the proper G/L account was done at that time.  In other words, nothing happened in the store that we did not record straight to the G/L.

So what’s the hold up?  Why wouldn’t a retailer want to save money?  If I have the information at my fingertips, why would I pay someone else to give me exactly the same result?  It’s like driving around in a lease vehicle while a perfectly good automobile sits in the garage.  An automobile you are making payments on, insuring and maintaining.  Does that make sense?  In running a retail business my goal was twofold – make sure we were growing the business profitably and control costs at every turn.

And the reason retailers don’t use the built in accounting?  You already know the answer.  The reasons range from any number of topics including:

  • Don’t understand how it works (there is help everywhere you turn here at PROFITsystems)
  • Don’t have CPA’s working in the store (not at all necessary)
  • Accountant won’t ‘allow it’ – don’t get me going on this one
  • Account numbers don’t make sense – (there’s good logic behind them, just ask me and we’ll explain)
  • My sister does the books – ok, this one I can’t win
  • We love XYZ accounting system and would never change that! A change that can save you real money?  Let’s chat about that.

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